Introduction of “IKIT” Framework in Sustainable Competitive Advantage of SMEs in Malaysia

Abstract

The service industry is currently presenting significant hurdles for small and medium enterprises (SMEs) in their pursuit of sustainable competitive advantage (SCA), mostly due to the prevalence of homogenous products and services within this sector. This element has resulted in heightened competition and rivalry among them. This study introduces the "IKIT" framework, which examines the relationship between information management, knowledge management, innovation, technology, and the sustainable competitive advantage of small and medium-sized enterprises (SMEs) in Malaysia. The purpose of this research is to investigate this topic. In anticipation of the year 2050, it is projected that Malaysia would achieve a level of development comparable to other nations, particularly in the context of the fourth industrial revolution (IR 4.0). The vast amount of information that is readily accessible presents prospects for its utilization in the development of novel products and services. In contemporary times, the prevalence of information and communication technology (ICT) and rapid technical progress has led to a significant reliance on electronic means for conducting business. This strategic approach is adopted by organizations to maintain a competitive edge and distinguish themselves from their rivals. However, it should be noted that despite the abundance of resources, not all businesses, particularly small and medium-sized enterprises (SMEs), possess the necessary competences to effectively manage these resources. Capability refers to the inherent capacity possessed by small and medium-sized enterprises (SMEs) to effectively utilize their available resources in order to accomplish their intended objectives. The findings indicate that the strategic competitive advantage (SCA) of small and medium enterprises (SMEs) is highly influenced by their knowledge capability, innovation capability, and technological capability.